Binance vs. SEC: Why is XRP missing from the SEC's list of mentioned cryptocurrencies?

Wed 07 Jun 2023 ▪ 4 min of reading ▪ by Luc Jose A.
Crypto regulation

In a context of increasing tension between financial regulators and crypto platforms, the announcement of a new lawsuit by the Securities and Exchange Commission (SEC) against Binance has stirred up a storm. The SEC accuses Binance of artificially inflating its transaction volumes and violating several rules, particularly regarding access for US users to its platform. However, a detail has caught the attention of some observers: the unexpected absence of Ripple’s XRP from the list of cryptocurrencies that the SEC now considers securities. While XRP has been under attack by the SEC for the past two years, this absence raises numerous questions. Why is XRP missing from this list? Is it a deliberate strategy on the part of the SEC? What could be the repercussions of this decision?

Binance, SEC and XRP logos

The unexpected absence of XRP from the SEC’s unregistered securities

Since Monday, June 5, the crypto platform Binance has been in the SEC’s crosshairs. The regulator has officially filed charges against the firm. Accusing Binance of several facts that had already leaked to the press.

Specifically, the regulator accuses Binance of artificially inflating the volume of its transactions in order to use the funds entrusted to it by users for other purposes. Furthermore, the SEC alleges that Binance failed to restrict access to its platform for US users. The result of all this is that the company would have deceived investors about the actual control exerted by the platform.

In the press release announcing the legal proceedings against Binance, the SEC made new revelations concerning assets that the regulator now considers securities.

The list includes 61 cryptocurrencies that would be unregistered securities. In other words, it is a list of assets subject to the legal strictures of the SEC. A total that represents $100 billion worth of tokens in circulation on the market.

To everyone’s surprise, one token stands out by its absence from this list: Ripple’s XRP. The situation is inexplicable given the ongoing feud between the SEC and Ripple. However, there might be reasons behind it.

An absence justified by strategic reasons?

If the absence of XRP is so surprising, it’s because its presence would have been logical. Especially since the asset has been undergoing the SEC’s torments for the past two years. Given the complete lack of sense in the absence of the asset from the list of securities mentioned by the SEC, speculations are running wild.

According to these speculations, the notable absence is not unrelated to the ongoing lawsuit against Ripple. According to some experts, it could be a deliberate choice by the SEC to protect its own interests.

Thus, the regulator might fear that taking the opposite stance could ultimately backfire. This option cannot be ruled out in the case of a victory for Ripple. Such a situation could potentially undermine the SEC’s credibility in the case against Binance. At the very least, this choice would be pragmatic. It would aim to prevent the stock market watchdog from facing decisions that would be, at the very least, incoherent.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.